Tesla's third-quarter financial results revealed a significant decline in profitability, with net profit falling 37% year-over-year. This drop was primarily attributed to the company's strategy of cutting vehicle prices to boost sales volume. While the price reductions succeeded in increasing the number of vehicles sold, the lower average selling price per car led to a notable decrease in profit margins. This development has raised questions among investors about the sustainability of Tesla's aggressive pricing tactics and their long-term impact on the company's bottom line.

Following the Q3 earnings announcement, Tesla's stock experienced a decline as the results failed to meet analyst expectations. Despite CEO Elon Musk's optimistic tone during the earnings call, the market response was decidedly negative, reflecting concerns about the company's ability to maintain profitability amid ongoing price cuts. The earnings miss and subsequent stock drop underscore the heightened scrutiny Tesla faces as it navigates a competitive electric vehicle market and attempts to balance growth with financial stability.

In a separate development, Tesla has claimed to have launched a ride-hailing service in the San Francisco Bay Area utilizing its Robotaxi technology. However, there are currently no fully autonomous Tesla taxis operating in California, and the company's assertions have been met with skepticism within industry circles. While the announcement signals Tesla's ongoing ambitions in autonomous mobility, the lack of verifiable evidence for operational Robotaxis highlights the challenges the company faces in bringing this technology to market at scale.

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